Hong Kong International Airport (HKIA) is set to raise the charges passengers pay to take a flight there. From 1 January 2025, the airport’s so-called “Passenger Security Charge” (PSC) will go up by HK$10 (1.20€) to HK$65 (7.70€), an 18% increase.
User pays, cost recovery
The airport announced the price hike in a press release, where it also made clear that further increases could still be on the way. Monitoring of passenger traffic growth and demand at HKIA will dictate how and when any further rises will be introduced, but they are likely to be made in phases up to HK$75 (8.80€) by 2027 and beyond.
The last time the passenger security charge was adjusted was in 2021. The application of the fee is part of a Hong Kong Aviation Security policy to ensure the costs of implementing services are paid by those who benefit directly from them, or the “user pays, cost recovery” principle.
Though the latest change will come into effect from New Year’s Day 2025, it will not be applied to tickets purchased and issued in advance for travel after that date. This could mean the announcement will incentivise advanced ticket purchases for departures from the airport in 2025 and beyond, though the advantage gained per person is small.
Upgrades and expansions
The purpose of the increase is to enable Hong Kong “to maintain security excellence,” the authorities said, and to “provide funding for further upgrading the airport’s security facilities and systems by installing a smart passenger security screening system, replacing the hold baggage screening system, and expanding the security coverage to related areas under the Three-runway System (3RS).”
Hong Kong’s three runway system has been in the pipeline since 2016. As well as a third 3,800-metre runway, it has involved the expansion of Terminal 2, a new concourse, and all the associated passenger services and amenities. When work started on the runway in 2022, Chan Kwok-ki, Chief Secretary for Administration noted the project would “significantly increase the passenger and cargo handling capacity of HKIA,” adding that through its “connectivity to the world, Hong Kong will maintain and enhance its status as an international aviation hub, to better dovetail with the macro strategies of the 14th Five-Year Plan and Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area.”
Hong Kong used to be the Asia-Pacific region’s busiest airport but tight Covid-19 restrictions caused it to drop an almighty 29 places before making a comeback to sit behind Singapore Changi and Seoul Incheon. In the 2024 world airport rankings, HKIA just failed to make it into the top ten, placing 11th.